Distributed or retained branch profits are taxed at a rate between 22% and 28% (see the Taxes on corporate income section). Further taxes are payable when profits are remitted to headquarters abroad.
Countries and territories considered as tax havens by tax authorities
Besides the tax haven list published by the tax authorities shown below, ‘low-tax jurisdictions’ shall be subject to the same tax treatment. ‘Low-tax jurisdictions’ are defined as a territory where the effective rate of income tax or taxes of an identical or similar nature is less than 60% of the applicable rate in Ecuador. Additional considerations are also taken by the tax authorities for determination of low-tax jurisdictions/preferential tax regimes.
|American Samoa||Cocos (Keeling)s||Marshall Islands||Saint Vincent and the Grenadines|
|Andorra||Cook Islands||Mauritius||Santa Elena|
|Anguilla||Djibouti||Montserrat (UK)||Solomon Islands|
|Antigua and Barbuda||Dominica, Commonwealth of||Myanmar||Sri Lanka|
|Aruba||French Polynesia||Nauru||Swaziland, Kingdom of|
|Bahamas||Guam||Norfolk Islands||Trinidad and Tobago|
|Bahrain||Guyana||Oman||Tristan Da Cunha|
|Belize||Jordan||Panama||Turks and Caicos Islands|
|Bonaire, Saba, and St. Eustatius||Kuwait||Puerto Rico||United Arab Emirates|
|Brunei Darussalam||Labuan||Qeshm Islands||Vanuatu|
|Cabo Verde||Liberia||Saint Kitts and Nevis Islands||Virgin Islands (British)|
|Campione D´italia||Macao||Saint Lucia||Virgin Islands of the United States|
|Cayman Islands||Madeira (Portugal)||Saint Martin||Western Samoa|
|Christmas Islands||Maldives||Saint Pierre and Miquelon||Yemen|
Certain tax regimes from Bulgaria, Estonia, Macedonia, Montenegro, Serbia, and the United States may be considered preferential tax regimes.